UPDATE 3-Obama rejects view of India as "land of call centres"

* Obama to ease U.S.-India export rules

* US businesses outline $10 bln in deals as Obama arrives
(Recasts with Obama remarks)

By Alister Bull and Patricia Zengerle

MUMBAI, Nov 6 (BestGrowthStock) – President Barack Obama hailed
India on Saturday as a vital source of U.S. growth and jobs as
his administration announced relaxation of U.S. export controls
to spur trade between the two countries.

“As we look to India today, the United States sees an
opportunity to sell our exports in one of the fastest growing
markets in the world. For America this is a jobs strategy,”
Obama said as he kicked off a 10-day tour of Asia.

Obama’s Democrats lost control on the U.S. House of
Representatives in congressional elections on Tuesday as voters
punished the party for high U.S. unemployment after a campaign
marked by criticism of China and outsourcing hubs like India.

Acknowledging that anger, Obama said India was still seen
by many Americans as “a land of call centres and back offices
that cost American jobs”, but he rejected that view.

“It is a dynamic, two-way relationship that has created
jobs and growth and higher living standards in both our
countries and that is the truth,” he told business leaders.

In an address to a business summit, the president said U.S.
companies were finalising deals worth around $10 billion.

“Today’s deals will lead to more than 50,000 jobs in the
United States,” he said.

Deals include previously announced transactions involving
General Electric (GE.N: ) for aircraft engines and gas turbines,
and Boeing (BA.N: ) for 737 passenger planes. But details on a
key $4.5 billion sale by Boeing of C-17 military transport
planes were still being ironed out.

White House aide Michael Froman told reporters Obama would
ease export controls imposed after India’s 1998 nuclear tests,
and support Indian membership of four key global nuclear
nonproliferation regimes.

“This really includes India as a major player in a non-
proliferation world… and it recognizes the nature of the
strategic relationship we now have with India,” Froman said.

The four regimes are the Nuclear Suppliers Group, the
Missile Technology Control Regime, the Australian Group, which
aims to reduce the spread of chemical and biological weapons,
and the Wassenaar Arrangement, a multinational effort to
control the transfer of conventional arms and dual-use
technology.

Obama will remove almost all of the remaining Indian
defense and space organizations from a list of entities
maintained by the U.S. government to curb proliferation, and
relax so called dual-use rules for Indian firms that regulate
technology with both civil and defense applications.

“We will end up treating India similar to other close allies
and partners other than as a country of concern,” Froman said.

Terry McGraw, head of McGraw-Hill Companies (MHP.N: ) and
chairman of the U.S.-India Business Council, said Obama’s visit
came at a vital time amid rising anti-trade rhetoric spurred by
high unemployment at home and elsewhere.

“When you’ve gone through an economic downturn to the
extent that we have, a lot of countries very easily go
protectionist and we’ve seen a lot of protectionism around the
world. you can’t win in a protectionist kind of view,” he
said.

(Editing by Andrew Marshall)

UPDATE 3-Obama rejects view of India as "land of call centres"